811.5211B/8–2945: Telegram
The Consul General at Manila (Steintorf) to the Secretary of State
[Received August 29—11:02 a.m.]
584. Philippine Department of Justice August 27 issued instructions barring all aliens in Philippines from acquiring real estate or any right therein including right to accept Filipino-owned residential lots as mortgages for loans. This ruling based on assumption that all privately owned [lands?] in Philippines were originally part of public domain and therefore cannot be transferred, alienated or encumbered except to Filipinos under provisions of Section 1222 of Commonwealth Act 615. This ruling is directly opposed to constitutional provision which limits nationalization to lands of public domain and to transfer of privately owned agricultural land except by hereditary succession. All previous rulings of Department of Justice have ruled that privately owned residential and business property are not subject to the constitutional prohibitions. I anticipate serious international repercussions from this ruling. I will discuss the matter informally with President Osmeña but will take no further action unless specifically instructed by Department.